Achieving customer happiness is challenging, but worth your efforts because it pays back dearly and for long term. Here’s what I mean: happy customers are a goldmine to your business and are associated with fascinating benefits. That’s why you must not work towards earning from your customers only but also looking forward to making them happy.
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According to the Echo 2012 Global Customer Service Barometer, almost a third of customers believe that businesses are paying less attention towards providing a great customer service. And only 7% of consumers reveal that their customer service experiences with companies exceed their expectations.
What does this mean? There’s a huge gap between customer happiness and most businesses. So, you should always stand out and aim at satisfying your current customers because they’re of much value to your business than new customers. Case in point: the probability of closing a sale with current customers is 60 to 70%, but the probability of selling to a new customer is only 5 to 20%.
Here are facts about happy customers you need to know:
Are Loyal To Your Business.
Happy customers will always come back to your business because of the satisfaction they receive. They will always first think of your business whenever they need to make a purchase and won’t have to look elsewhere.
As a matter of fact, the best customer experience with your business ranges from quick service, 24/7 availability to a personalized service that gives your customers a satisfying experience. And according to a study by Morning Consult, 50% of millennials say that positive customer service experiences with a brand are essential in winning their loyalty for that brand.
Want to know the best part? This long-term loyalty is beneficial to your business because it provides it with actively engaged customers in the sales funnel all the time. As customers come back frequently and are exposed to more of your products/services.
Remember these customers already have trust for your business and won’t spend much time in the funnel before closing the sale. Even better, customer loyalty is associated with consistent sales that result in more profits. And according to Bain and Company, a rise in customer retention by only 5% increases profits by 25% to 95%.
Refer Your Business
Happy customers play the golden role of referring your business to others. Wondering how? They share their good experiences with others and also recommend your business to their families, friends, and relatives. More so, in this digital world, online reviews are greatly considered and happy customers give your business great review ratings online. These reviews drive other customers to pick interest in your business.
Look: according to Temkin Group, 77% of customers who have had a positive experience with your business would recommend it to their friends. Best of all, customers acquired through referrals have a 37% higher retention rate. And the word of mouth of your customers generates twice the returns from paid advertising.
Referred customers also spend less time in your sales funnel and close the sale quickly because they already trust your business. Why? Their referees have already assured them of a great service.
Tend To Buy More
More sales mean more revenue thus happy customers are associated with more revenue for your business because they tend to buy more of your goods/services. Happy customers are already impressed with your business and can consume more without worrying about anything. Why? Because all their doubts about products/services have been cleared by their first satisfactory experience with your business.
Check this out: a study by Temkin Group reveals that a small increase in customer experience drives an average revenue rise of $823 millions for a business with $1 billion in its annual revenues. And it happens in a period of over three years.
More so, there is a great opportunity for up-selling and cross-selling to your happy customers more of your products or services. This helps in maximizing sales by selling more to your current customers at low costs as nothing much is spent in attracting them back.
But here’s the kicker: 65% of businesses can successfully up-sell or cross-sell to existing customers but only 12% can successfully up-sell or cross-sell to new customers. Thus, your current customers are a ready market for your goods/services.
They Pay More.
Happy customers have nothing against the price of your goods/services because most of your customers say they are ready to pay more for a great service. Let me explain, what matters most to your customers is the satisfaction they get from your goods/services. This gives you an opportunity to charge what your goods/services are worth. But that’s just part of it, it also helps you in improving the quality of your goods/services consistently because you are assured of a worthy pay to cover the costs.
For example, a study by Gartner reveals that 64% of customers find their experience more important than the price of your goods/services when making a purchase. Furthermore, The 2017 American Express Customer Service Barometer shows that 7 out of 10 consumers in the United States say they’ve spent more money so as to do business with a company that provides a great service.
Here’s The Catch
A customer is why your business exists so; customer experience with your business should be your top priority. It starts from timely communication to knowing their interests and solving their issues promptly. So, if you want to create more happiness for your customers, you must invest in customer experience.
On the other hand, a survey by Gartner reveals that businesses that embark on customer experience projects start by focusing on how they collect and analyze their customer feedback.
Well, with a customer service software app, your customers’ experience can be optimized to their satisfaction. Wondering how? Through providing your customers with quick/timely, 24/7, personalized experiences they long for. After collecting information about them from chat transcripts and search history.
But wait, there’s more, a study by Aberdeen group reveals that businesses with a live chat service win a 34% greater improvement in customer satisfaction rate annually than those without.